In H1 2022 AD Plastik Group incurred a net loss of HRK 59.46 million, the Solin-based manufacturer of plastic car parts said on Wednesday, noting that its business results had been significantly affected by the geopolitical situation.

The loss includes value adjustments in the amount of HRK 75 million, made on the basis of estimates of the recoverability of assets of the group’s Russian companies.

The group’s business revenue totalled HRK 433.09 million, 30.4% down from H1 2021, while normalised EBITDA was HRK 18.58 million, down by 77.5%.

The group notes that its results in H1 2022 were significantly affected by geopolitical developments and consequences of a shortage of semiconductors on the market.

The Russian-Ukrainian crisis has additionally affected the results of the group’s Russian companies, whose revenue in H1 dropped by almost 60% due to what was almost a complete cessation of car production on that market in the last three months.

AD Plastik Management Board chair Marinko Dosen said some of the Western car producers had left the Russian market while others had suspended production activities.

“Consequently, their suppliers did the same so the car industry on that market has been almost at a standstill in the past three months. The relaunching of production has been announced for the second half of the year, however, considering the many uncertainties, great caution is necessary when making plans. European car manufacturers are still facing shortages of semiconductors, which is why the production capacity of some of them is still below the usual levels,” said Dosen.

He noted that despite the very demanding conditions, the group’s and its core company’s net financial debt had been reduced compared to the end of 2021 and that its financial status was stable.

The intensity of car manufacturers’ development activities has increased, as evidenced by the fact that AD Plastik signed €173.7 million worth of new deals for the European market in the period covered by its report for H1 2022.

Dosen noted that the company was going through a difficult period that was certain to last for some time.

Apart from the core company in Solin, AD Plastik Group also comprises two factories in Russia and one each in Hungary, Slovenia and Serbia.